Buying a major brand's 24K gold jewelry, only to find it might not be pure gold? Recently, a consumer purchased a 24K gold fortune bag pendant from a Chow Sang Sang store in Qingyuan, Guangdong, claiming it became scratched and showed white discoloration after just one day of wear. The consumer's own test results indicated a 35.62% difference in gold content between the highest and lowest measurement points on the jewelry. Is this a case of Chow Sang Sang misrepresenting its products, or is there an error in the consumer's testing method? An investigation into Chow Sang Sang's Tmall flagship store revealed that the same style of fortune bag pendant is still being sold. Customer service representatives stated that this product is 24K gold jewelry and affirmed that Chow Sang Sang's 24K gold items comply with national standards. Regarding the allegations of scratching and whitening, the customer service personnel stated, "All Chow Sang Sang 24K gold jewelry complies with national standards, with a gold content ≥990‰, bearing the 24K gold mark, ensuring quality. We are actively following up and communicating on matters related to the news report. Non-authoritative test results are susceptible to interference and cannot be used as a basis for judgment. Customers can bring the item to nationally recognized institutions like NGTC for testing, or contact their local branch for assistance." Chow Sang Sang's official statement noted that they "attach great importance to the matters raised by the customer and are actively carrying out related work; relevant progress will be communicated promptly." Inquiries were made with the professional jewelry and jade inspection agency National Gemstone Testing Center (NGTC). Staff indicated that gold turning white could be due to various reasons and suggested that, following the inspection certificate accompanying the jewelry, a re-inspection could be requested from the issuing agency. While strongly tied to gold prices, which has brought benefits during periods of rising prices, core issues at Chow Sang Sang have become prominent, including structural business imbalances, aggressive channel adjustments, and intensifying market competition.
Is Chow Sang Sang being unfairly accused? The focal point of this incident is the significant discrepancy in the jewelry's gold content test results. Public information shows that on January 27, Ms. Li visited a store in Qingyuan City engaged in gold recycling business for a spectroscopic test of the fortune bag pendant. The test result photo provided by Ms. Li shows that the highest measured point on the pendant had a gold content of 99.99%, but other points yielded different data: one point showed 96.21% gold content, another 83.35%, and the lowest point was merely 64.37%. The difference between the highest and lowest gold content points was 35.62%. Additionally, the test result photo indicated the presence of various other metallic elements in the pendant, such as iron, silver, and palladium. According to national standards, 24K gold jewelry should have a gold content no less than 990 parts per thousand. Ms. Li mentioned that the fortune bag pendant was cleaned before testing, yet it still contained other substances, and the gold purity remained substandard. Does Chow Sang Sang potentially face allegations of "short weighting" on gold content? Can 24K gold actually turn white? Posing as a consumer, inquiries were made with laboratory staff at the National Gemstone Testing Center (NGTC). The staff indicated that gold turning white could indeed result from various causes; for instance, contact with cosmetics might lead to whitening. However, determining the specific cause and whether the gold content is sufficient requires actual testing. "If the gold content is没有问题 (no issue), the whitening might be due to other reasons; it doesn't necessarily mean the gold content is insufficient." Regarding the presence of other metallic elements in the 24K gold jewelry, the staff noted that spectrometers typically perform surface detection. If something is contained internally, destructive testing is usually required to measure the interior. "Surface measurement with a spectrometer is accurate, but if some gold items encapsulate other materials inside, spectrometers have limitations due to their limited measurement depth." "It's difficult to comment on this matter as the store has its side, and the consumer has theirs," the person suggested. They recommended requesting a re-inspection from the agency that issued the original certificate accompanying the 24K gold jewelry. If NGTC performed the initial inspection, a re-inspection would be free of charge. An insider from the jewelry industry mentioned that gold recycling outlets often lack proper testing qualifications and capabilities. Some even intentionally underestimate gold purity to lower prices, a situation that has become commonplace. This person also advised that the consumer and Chow Sang Sang staff conduct a joint re-inspection, as the truth would be revealed through testing. Visiting multiple authoritative testing institutions could also make the results more persuasive. "If it's genuine, everything settles; if it's fake, compensation should be paid, and apologies made."
Revenue Declines, Revealing Structural Business Imbalance Chow Sang Sang recently implemented a quiet round of price increases. On January 9, netizens noticed the price of a Chow Sang Sang gold four-leaf clover necklace had been raised from 120,800 yuan the previous day to 136,000 yuan. Customer service at Chow Sang Sang's Tmall flagship store explained that the pricing for these specially selected items includes material value, design fees, patent fees, etc. Due to soaring gold prices and continuously increasing costs, the company adjusts selling prices periodically. In 2025, international gold prices surged dramatically, with an annual increase close to 70%, marking the largest yearly gain since 1979. This January, international gold prices continued to hit new historical records, and domestic gold jewelry brand prices soared accordingly. Despite experiencing sustained rises in gold prices, Chow Sang Sang's performance reveals underlying concerns. Beneath substantial net profit growth, core issues and risks have become prominent, including declining revenue, structural business imbalances, aggressive channel adjustments, and intensifying market competition. Chow Sang Sang's unaudited interim results for the six months ended June 30, 2025, show revenue of HK$11.036 billion for the period, a 2% year-on-year decrease. Specifically, retail business revenue was HK$10.763 billion, down 3%, while revenue from other businesses was HK$273 million, a 4% increase. Benefiting from higher gold prices, gold product sales achieved higher gross profit margins, with the overall gross margin rising 5.2 percentage points to 33.5%. However, revenue from the Jewelry and Watch Retailing segment decreased by 3% year-on-year. Competition in the Chinese market has intensified. In the first half of last year, Chow Sang Sang experienced a net reduction of 74 various brand stores in Mainland China, with 62 net closures under the core "Chow Sang Sang" brand. Lower-tier markets, once considered a "blue ocean of growth" for gold brands and a main battlefield for aggressive expansion, have now become a "retreating beach." Financial reports indicate that in the first half of 2025, Chow Sang Sang's jewelry retail revenue in Mainland China was HK$7.249 billion, a 2% decrease year-on-year, while Hong Kong and Macau saw a 6% decline. Notably, same-store sales of set jewelry (primarily diamond) plummeted by 23% in Mainland China and 22% in Hong Kong and Macau. Analysts believe Chow Sang Sang's profit growth relies mainly on external factors like gold price increases and cost control, rather than being sales-driven. Consumer demand remains weak in its core markets of Mainland China, Hong Kong, and Macau, while high-margin set jewelry (mainly diamond) has significantly dragged down growth. "Over-reliance on gold products means performance is highly correlated with gold price fluctuations," the analyst stated. "While this structure can boost gross margins when gold prices rise, it also weakens the company's ability to withstand cyclical risks." They noted that gold jewelry accounts for 82% of total sales in Chow Sang Sang's Mainland China market, tightly binding its performance to gold prices. Meanwhile, sales of diamond-set jewelry, traditionally a profit growth driver, are dismal, indicating a failure to capture the shift in consumer preferences towards "self-indulgence" and fashion-oriented trends. Recently, as international gold prices experienced a significant drop, per-gram prices of gold jewelry have also fluctuated downward. On February 3, Chow Sang Sang's 24K gold jewelry was priced at 1,498 yuan per gram, a decrease of 120 yuan per gram compared to the price of 1,618 yuan on February 1.
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